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Who pays under the joint tax plan?
Posted By Tazra Mitchell On July 17, 2013 @ 3:19 pm In NC Budget and Tax Center | Comments Disabled
As lawmakers work to change the state’s tax code, there has been renewed discussion of who pays taxes in North Carolina. Creative storytelling by legislators won’t change what we already know: every household in North Carolina pays taxes .
We’ve been doing a lot of myth busting around tax reform , including a point made earlier today by a legislator on the House floor. This member claimed that all taxpayers would be better off under this plan compared to the current tax code. This would be great news because currently low- and middle-income families pay a greater share of their incomes in state and local taxes compared to high-income families. But again, the facts  just don’t support the member’s claim.
The chart below shows that the joint tax plan does not require the state’s wealthiest residents to pay as much as a share of their incomes in state and local taxes as the very poorest taxpayers pay. The wealthiest taxpayers will experience a drop in taxes paid as a share of their income while everyone else experiences an increased share.
Indeed, this tax plan not only fails to be comprehensive tax reform but also fails to meet the criterion of fairness.
Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org
URL to article: http://pulse.ncpolicywatch.org/2013/07/17/who-pays-under-the-joint-tax-plan/
URLs in this post:
 every household in North Carolina pays taxes: http://www.ncjustice.org/?q=infographic-skin-game-everyone-pays-taxes
 myth busting around tax reform: http://www.ncpolicywatch.com/2013/07/17/the-myths-versus-the-reality-of-the-tax-plan/
 the facts: http://www.ncjustice.org/sites/default/files/Individual-Tax-Scenarios_Fiscal%20Research%20Division.pdf
 Image: http://pulse.ncpolicywatch.org/wp-content/uploads/2013/07/Who-Pays_Joint-Tax-Deal_with-EITC_July17.jpg
 Senate tax plan gambles away North Carolina’s future: http://pulse.ncpolicywatch.org/2013/06/14/senate-tax-plan-gambles-away-north-carolinas-future/
 Preliminary Analysis of Joint Tax Plan: Still a big tax cut at the top: http://pulse.ncpolicywatch.org/2013/07/16/preliminary-analysis-of-joint-tax-plan-still-a-big-tax-cut-at-the-top/
 Cataloguing the Impact of the Senate Tax Plan: http://pulse.ncpolicywatch.org/2013/06/19/cataloguing-the-impact-of-the-senate-tax-plan/
 Experience of Low- and Middle-Income Taxpayers Down the Road if Senate Tax Plan Passes: http://pulse.ncpolicywatch.org/2013/06/20/experience-of-low-and-middle-income-taxpayers-down-the-road-if-senate-tax-plan-passes/
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